(Bloomberg) – Wall Street traders who were concerned about the possible consequences of American rates on inflation, did not receive much relief from economic data that only underlines concern about price pressure, so that speculation will be the Federal Reserve, is not in a hurry To lower the interest rates.
Most of them read from Bloomberg
The shares knew this week’s profit, with the S&P 500 by around 1%. President Donald Trump said that next week he will announce mutual taxes in an escalation of his trade war. United States Steel Corp. Sank while he indicates that Nippon Steel Corp. is considering investing in the company instead of an outright purchase. Equities came under pressure after data of the consumer removal showed in the midst of concern about inflation. Figures of mixed jobs emphasized a moderating – but healthy – labor market and a jump in wages. Bonds fell. Megacaps slid in the midst of a disappointing prospect of Amazon.com Inc.
The last economic lectures help explain why policy makers have indicated that they are not in a hurry to lower loan costs after three rate reductions last year. Although traders still bet that the next step will be a reduction, they are only fully in price in September.
“The wider image is still one of the resilience of the labor market and the continuing wage pressure,” said Seema Shah at Principal Asset Management. “This simply gives the FED little reason to reduce policy rates immediately.”
The Nasdaq 100 lost 1.3%. The industrial average of Dow Jones fell 1%. A measure for the “Magnificent Seven” Megacaps fell 2%. The Russell 2000 fell 1.2%. Amazon tumbled around 4%. Roblox Corp. Is part of an active investigation by the US Securities and Exchange Commission, according to information obtained by Bloomberg News.
The proceeds on a 10-year-old treasury went to 4.49%. The Bloomberg Dollar Spot Index rose by 0.2%.
Non -agricultural wage lists rose last month by 143,000 after upward revisions until the previous two months. Other revisions were only carried out once a year, were not as serious as ever thought – work profits last year on average 166,000 a month, a delay in the initially reported 186,000 pace.
The unemployment rate was 4.0% – the survey used to produce the number that individual revisions were included to display a new population estimate at the start of the year, which makes the figure incomparable with previous months. In the meantime, hourly wages climbed by 0.5%.
“Strong wage growth is good for employees and must be considered a positive for consumer spending,” said Bret Kenwell at Etoro. “However, Wall Street has kept a close eye on this meter in recent years, so that he is concerned that too strong wage growth could push inflation higher.”
Outside the head result, the last job report is not a reason for alarm, he said.
“Although some investors can worry about implications for inflation or cuts, you are not mistaken: it is better to have a strong economy and labor market than a deteriorating environment. Remember that stocks are doing well in the midst of mild inflation, “Kenwell concluded.
To Neil Dutta at Renaissance Macro research, the fixed income reaction to the data is an opportunity to go to the activa class for a long time.
“Ultimately, the Fed will have to lower the rates, because too many things don’t work with rates that high,” said Dutta. “Looking at the data itself, cyclical areas of the labor market are slow. Goods that produce employment is soft and the total hours in the production sector fell. “
Nevertheless, Dutta also notes that the low unemployment level probably keeps the fed on the sidelines.
“The Fed is not forgiving at the moment,” he said. “They are looking for reasons to wait and today’s report gives them one.”
Fed -Governor Adriana Kugler said it is appropriate to maintain the benchmark interest of the FED, where that has been a stable labor market for some time, limited progress in inflation in recent months and uncertainty about the prospects for tax and trade policy. In the meantime, Minneapolis Fed President Neel Kashkari told CNBC that he expects inflation to cool down in the direction of the target of 2%, so that policy makers can lower interest rates towards the end of the year.
Lindsay Rosner at Goldman Sachs Asset Management says that the FED is probably cautious about reading today’s report.
“Anyway, you turn it, the Fed should feel very pleasant for the rest of the winter, knowing that it was the right decision to press the pause button on the interest rates,” said Charlie Ripley at Allianz Investment Management.
The FED has already eliminated expectations for its next rate reduction, and this job report probably justifies that approach – if not pushing to push the expectations even further, according to Jason Pride at Glenmede.
“The Federal Reserve still has a round of inflation and employment data for Mull before the next planned announcement on March 19,” said Mark Hamrick at Bankrate. “It can be seen that the patient remains before it has made another interest rate to have recently chosen to be pat.”
In the coming week, the American report of the January consumer price index will probably turn out to be a mixed bag for the inflation-fighting Fed, while the retail trade is probably delayed, according to Bloomberg Economics.
“Core CPI is surprised at the advantage in January in 13 of the last 14 years, with proceeds that rise in 6 of the last February 7,” said Guneet Dhingra in BNP Paribas. “This year, however, we were able to see an asymmetry towards lower yields – an upward print can be seen as a ‘usual’ January distinction, but a disadvantage is seen as good news.”
Highlights of companies:
Amazon.com Inc. Investors warned that it could be dealing with capacity restrictions in its cloud computing division, despite plans to invest around $ 100 billion this year, with the majority of the money to data centers, chips from home and other equipment about artificial intelligence services.
Apple Inc. is planning to reveal a long -awaited overhaul of the iPhone SE in the coming days, a movement that will modernize its cheaper model in an attempt to stimulate growth and to seduce consumers to switch from other brands.
Pinterest Inc. achieved a strong income from the holiday quarters and gave a cheerful prediction for the sale in the current period, a sign that its advertising company continues to grow despite increased competition from much larger rivals in the social network space.
Cloudflare Inc., a software company, reported results in the fourth quarter that beat expectations.
Expedia Group Inc. placed better than expected gross bookings in the last months of 2024, as a result of the resilient demand for travel during the winter holiday season.
Nikola Corp. Investments a possible bankruptcy application, according to people who are familiar with the issue, after a tumultuous period in which the electric truck maker is waved between stock market Darling and Scandal-plagued company.
Some of the most important movements in markets:
Stock
The S&P 500 fell 0.95% from 4 p.m. New York Time
The Nasdaq 100 fell 1.3%
The industrial average of Dow Jones fell by 1%
The MSCI World Index fell by 0.8%
Bloomberg Magnificent 7 Total Return Index decreased by 2%
The Russell 2000 index fell by 1.2%
Currency
The Bloomberg Dollar Spot Index rose by 0.2%
The euro fell 0.5% to $ 1,0329
The British pound fell 0.2% to $ 1,2409
The Japanese yen had not changed much at 151.29 per dollar
Cryptocurrencies
Bitcoin fell 0.9% to $ 95,923.59
Ether fell by 4% to $ 2,601.22
Tyres
The proceeds on 10-year treasuries went up to 4.49%
The 10-year yield from Germany had not changed much to 2.37%
The 10-year yield of Great Britain had changed little to 4.48%
Goods
West -Texas Intermediate Rudde Reden 0.5% to $ 70.95 per barrel
Spot gold rose by 0.2% to $ 2,861.96 per ounce
This story was produced with the help of Bloomberg Automation.
-With help from Lynn Thomasson, Allegra Catelli and Robert Brand.
